·         Price Band fixed at ₹ 280 to ₹ 300 per equity share of face value of ₹ 10 each (“Equity Share”);

·         The Floor Price is 28 times the face value of the Equity Shares and the Cap Price is 30 times the face value of the Equity Shares;

·         Bid/ Offer will open on Monday, September 25, 2023 and close on Wednesday, September 27, 2023. The Anchor Investor Bidding Date shall be Friday, September 22, 2023;

·         Bids can be made for a minimum of 50 Equity Shares and in multiples of 50 Equity Shares thereafter.

NATIONAL/ MUMBAI, 21 SEPTEMBER, 2023 (GPN):  Chennai-based integrated facilities management firm Updater Services on Thursday announced the price band for its Rs 640-crore public offering, at Rs 280-300 per share, for the issue opening on September 25.

The company which started way back in 1987 in Chennai, claims to be the market leader with a revenue of Rs 2,100 crore in FY23, from which it had earned Rs 145 crore net profit, up from Rs 1,483 crore and Rs 108 crore, respectively, in the previous fiscal ending March 2022.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer-for-sale of up to 80 lakh equity shares for up to Rs 240 crore, by a promoter and existing shareholders.

At the lower end of the price band the issuer will raise Rs 624 crore and at the upper end, Rs 640 crore, the group chief financial officer Balaji Swaminathan told GPN here on Thursday.

Swaminathan said the company has around Rs 170 crore debt, which is mostly short-term working capital loans and the company will pare this by Rs 133 crore with the issue proceeds.

The company will also set aside Rs 115 crore as working capital and Rs 80 crore for acquisitions and the rest for general corporate purposes.

Under the offer-for-sale route, Tangi Facility Solutions, a promoter group entity owned by Raghunandana Thangirala, the chairman and managing director of the firm and his wife, owning 22 per cent, will sell 7.5 per cent.

Besides, two external investors — India Business Excellence Fund-II and India Business Excellence Fund-IIA, which collectively own 17 per cent, will pare their pre-issue holding by 7.5 per cent, Thangirala told GPN.

Thangirala and his wife along with the holding firm Tangi Facility Solutions own 78 per cent and 5 per cent with employees through an stock option announced earlier, which after the issue dilution will come down to 58 per cent and the holding company will own 10 per cent.

The company offers integrated facilities management services and business support services, catering to companies in the FMCG, manufacturing and engineering, BFSI, healthcare, IT/ITes, automobiles, logistics and warehousing, airports, ports, infrastructure and retail spaces.

The three-day initial public offering will conclude on September 27 and the bidding for anchor investors opens on September 22.

IIFL Securities, Motilal Oswal and SBI Capital Markets are the book-running lead managers to the issue. Equity shares of the company will be listed on the BSE and the NSE.Ends

Availability of the Red Herring Prospectus (“RHP”): A copy of the RHP shall be available on website of Securities and Exchange Board of India (“SEBI”)  at www.sebi.gov.in and is available on the websites of  the BRLMs, i.e. IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capitals Market Limited at www.iiflcap.com, www.motilaloswalgroup.com and www.sbicaps.com, respectively  and on the website of BSE and NSE at www.bseindia.com  and www.nseindia.com, respectively.